Reflective Report: Reebok's Strategic Decisions and Analysis

This reflective report analyzes Reebok's strategic decisions made during a business simulation, focusing on how the company aimed to increase profits, expand its product range, and compete with rivals like Nike and Puma. The report delves into the company's major strategic moves, including a shift towards online services and increased promotional activities. Furthermore, it applies and evaluates several strategic management models. These models include PESTLE analysis, which examines political, economic, social, technological, legal, and environmental factors impacting Reebok; Michael Porter's Five Forces, assessing competitive rivalry, new entrants, buyer and supplier power, and the threat of substitutes; SWOT analysis, identifying the company's strengths, weaknesses, opportunities, and threats; and finally, Total Quality Management is also reviewed. The report emphasizes the importance of adapting to consumer preferences, technological advancements, and maintaining a strong brand image to ensure long-term success in the competitive sports apparel market.

Reflective Report

Table of Contents
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
Task 2...............................................................................................................................................4
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Reflective report is the report where the reflection of one's views, ideas, expression,
emotions and knowledge is being done by the individual. It is the informative report which
provide the full detail of the subject in one's own views.
Reebok was established in 1958 in Bolton, United Kingdom. The founder of the company
is Joseph William Foster and Jeff Foster. The company manufactures, designs, distributes and
sells fitness, running and CrossFit sportswear including the footwear and clothing. The above
report includes the evaluation of strategic decision which was made by the company during
Business strategic game simulation. The report ends with the application and evaluation of six
supporting strategic management model which underpin the strategic approach.
Task 1
I have analysed the major strategic decision have been taken by the Reebok during the
Business strategic game simulation. In this they had developed major decision for the company
so that they can gain a huge profit margin for them. Wide range of consumer can be attracted
towards their products so that they can raise their sales. Te company also wants to compete with
their rivals in the market so they had taken the major decision which can further helpful for them
in competing with them and maintaining their brand loyalty among the marketplace. The major
decision which is being taken by the company is that along with the sports they will now also
focus on the other apparel also which is further helpful for the company in expanding their
production level and developing the new products which helps the to attract the other consumer
also along with the sportsperson. They had also focused ongoing with the advance development
and innovation in their products so that they can work with the new trend and consumer are also
satisfied with the brand product. The product of the company must be time to time updated
according to the taste and preference which is helpful for company in maintaining their brand
loyalty among the consumers and maintaining their brand image in the marketplace. The another
major decision which is being made by the company is that they had decided to emphasis more
on the online services as it which preferred by the consumer nowadays, they want all things at
their home with one simple step which can be made easy by the online services and thus product
is more preferred by the consumer. They can get through with the online application and various
websites where they can sell their products directly to the consumer. Company has also decided
to raise their promotional activities so that they can maintain their brand image among the

consumer and more and more consumer can be attracted toward the company. They will use the
social media channel or other digital marketing tool which can be helpful for the company in
going through various promotional activities. This will be helpful for company in gaining the
huge profit margin for the company.
This all strategic decision which are taken by the company are very useful for the
company's growth. This all are the positive decision taken by the company for improving their
business operation and activities and thus it can be a productive step for the company. When all
this will be implemented in the company's business operation so that they can increase their sales
by 20% and further competing with their rivals that is Nike, Puma etc., which can be lack behind
by the company by these strategies. The company is moving forward with the intense changes
and development in their product and maintaining the uniqueness in the product. The main aim
of the company is rendering the high quality product to their consumer so that they existing
customer are connected with the company's product and more new consumers are attracted
towards the company. This is the significant step which is being taken by the company for
raising their sales and revenues for the preceding year & future. With the help of this they can set
up their brand image among the customers. Rivals can be get behind with this decision and soon
the company will become the popular brand globally. They are also expanding their business in
the emerging countries which is helpful for them in growing their business activities along with
the huge profit margin. For set up they are doing the complete market analysis so that the can set
up the business there and inbound sustain in the market for long term and had a loyal customer
trust their as well.
Task 2
PESTLE Analysis -
In PESTLE analysis of the Reebok discussed the political, economical, social,
technological, legal and environmental analysis. This analysis is helpful in knowing the macro
environmental factor analysis.
Political Factor- Many rules and regulation are formed by the government for enhancing the
business activities in country thus helps Reebok to enhance its business activities among the
emerging country so that they can expand their business in these countries. And the consumption
of the product in those emerging countries is very high this helps company to grow very rapidly
and establish their profit and get huge profit margin there (Newell and Marabelli, 2015).

Economic Factor- The company falls in the top three sport brands worldwide for having the
highest sale for athletic sports apparel and footwear. The product of the company are in premium
and mid-range and thus it also targets the low income groups, which are a billion in group. There
products are also categorised for various classes and gender present in society. With the help of
huge sale company had earned huge profit and their innovative & new products are getting more
popular. The GDP of the brand is 7.3% in the 2012-2013 which is 6.8% raised by the last year
data. Strong economic policies result in the fall in GDP and thus it is 6.8%.
Social Factor- the young generation of emerging countries are eagerly participating in the
different sports activities and thus for this are needed with the best and comfortable sport shoe
which can provide them the convenience during the sports or game (Divjak, 2016). The Brand
has tied upon with different sport academics and schools across world so that people are could
get aware about their product and remain fit. This helpful for company in attracting the wide
range of peoples to their product. The are also targeting the middle aged and old age people who
can use their shoes for walking and keeping their lifestyle healthy.
Technological Factor- The company is bringing the technological advances and new changes in
their products every year so that the consumer can find consistent innovation in their products
and thus it is further maintained by the company for maintaining the uniqueness of the product
and meeting the needs of the customers. The online marketing has been also introduced by the
company and emerging in trends and many people can book and order their shoes from home
only by seeing the product on the website of company (Rosati, 2017).
Legal Factor- Different legal aspects are being followed by Reebok while commencing their
business activities. The tax must be paid by the brand for the country in which they are operating
their business and meeting labour wages according to provision of the regulations. They follow
local policies, rule and regulation by ensuring safe and quick supply of products and getting good
profit for the sale of their product.
Environmental Factor-The company is following all the necessary rules and regulation which
are being made for the workplace standards and the impact of production activity on
environment has been minimized. They are focusing on achieving safe, fair and healthy
conditions for factory and follows the several rules related to that. The environmental laws and
regulations formed by countries are also followed by brand. Which helpful for them in attracting

the consumer and having a high quality production in their factories (Basile, Kaufmann and
Savastano, 2018).
Michael Porter's Five Forces -
It is the tool for examining the competition for business. Number and power of company'
competitive rivals, new market entrants, customers, suppliers and substitute products which
influence the profitability of company. This is described below-
Barriers to entry- Patents and another type of the proprietary intellectual property are affecting
business for entering the new market and by overcoming the barriers to entry company can easily
immerse to the different emerging countries so that they can attain the huge profit margin for the
financial year (Guggenberger and Rohlfing-Bastian, 2016).
Buyer power- The Biggest brand had set their own prices for their products in the market. The
product differentiation is very low which allow the company to make unique product for their
brand. If there are fewer buyers in the market then it reduces the buying power of the consumer
in the market. The buyers are more sensitive to the product pricing so the company had to keep
their product pricing not too high.
Supplier power- Supplier who is providing the quality goods to the company will be admired by
the company. The concentration of suppliers are fragmented. The company can switch to any of
the suppliers without worrying about the decrease in the quality it is very negative for company
they should not compromise with the quality of the product.
Threats of substitute- The products can be substituted expect the athletic shoes by normal
sandals and this could be a major threat of substitute for the company which can be further
expected by them. The company can switch to other specific product model and implement in
their company.
Rivalry within Industry - Companies under this industry are majorly focusing on the non-price
competition. Companies are also trying to gain or increasing the range of products available in
the market. Brand loyalty and brand image is huge factor in this industry to be focus upon which
leads brand to compete in advertising (Morden, 2016).
SWOT Analysis -
It is the strategic planning technique used by and organization for identifying the
strength, weaknesses, opportunities and threats which are related to the business competition or
project planning. It has been described below-

Strength- Reebok is the top three largest sellers of athletic footwear and athletic apparel
globally. The company is immensely working and providing its customer with the perfect
combination of technology and fitness each year which allows them to gain huge attraction of
consumer to their products. With the introduction of new technology they can also make better
shoes (Elorriaga, 2018). They are also making research and development program for knowing
the customer preference so that they can develop their product according to the preference of the
customers.
Weaknesses- The major problem which is being faced by the brand is the similar duplicate
product available in the market. Any controversy can also affect the company as it has a huge
rand image in the market. The company is targeting too many segments which can be risky for
the company and thus they can have a loss due to that (Andersen, Bresser and Hallin, 2016).
Opportunities- The demand of the product can be increase due to large market. The lifestyle
section can also be more focus so that they can attract the other customers also along with the
sports and athletics. They can raise their tie-ups with the sports academics and schools globally
so that there product will become more popular among the consumers. New technology and
development can also help the company in gaining the huge profit and market share for their
future sales.
Threats- The major competition is being faced by the company in casual market as the product
of the competitors are fashionable, trendy and modern. Rapid changes in the consumer
preferences and technology leads to have significant risk for the company and thus it affects the
operation of the company so they must be aware of the preference of customers time to time
along with the technological inundation.
Total quality Management-
Total quality management is the wide approach which is used by company for
continuously improving quality of all process, services and products. These all are intermediately
connected customer satisfaction, product & services quality and profitability of company. Firms
majorly focuses on the what they are doing rather than why they are in these business. The
company is taking feedbacks from their consumers so that they get to know where they are
lacking and further where they had to work more in the development (Meissner and Wulf, 2015).
They are relying on the experts so that they can avail the athletes with perfect style and fit. This
is helpful for the company to work for rendering the best quality product to their customers so

that they can be happy with their product. This strategy is used by the company for attracting the
huge customers to the company's product and modifying their product according to the athletes
demands and wants. By this company had gain huge profit margin and wide range of consumer
to the company's product so that they had raises their sales by customizing their products with
high quality standard product which can be admired by the athletes.
Marketing Mix 7Ps -
Marketing mix is the model for business foundation model, which centred around the
product, place, price, people, promotion, physical and process. It is the set of marketing tool
which can be used by company for attaining the objective of marketing (Campos and et.al.,
2015).
Product- The company is well recognized and popular sports brand. They render the wide range
of products to the consumers which can be suitable for women, men and children. The company
mainly focuses on apparel, sports equipments and footwear. The customized products of the
company is helpful in gaining the huge customer attraction so that the sales of the company can
be raised.
Place- Reebok has their exclusive stores, distributor and factory outlets. For the searching the
best location professionals are hired by company so that they can set their stores where wide
range of consumers and local people can easily attracted to the stores. With the online purchase
system, notion of selling has been completely changed (Esch, Schulze and Wald, 2019).
Price- The standard pricing policy is used by the company for targeting the market. For the
introduction of new product company keeps the pricing of the product as low so that consumer
are easily attracted to the new product., and when demand of that product increase in the market
pricing of product set with regular pricing.
People- There are dynamic people behind the Reebok brand and its diversity. The diversified
customer of the company are sports, yoga, fitness and wellness etc., so that the major number of
consumer can get with the products of the company.
Promotion- Fidelity promotional campaign has been launched by the company. Sportsmen are
being targeted by the company from cricket, motosports, NBA and football etc., as their brands
ambassador (Torres and Augusto, 2017). Many sports events are also sponsored by the company
such as Davis cup, IPL, Spartan Race etc., they promote new product in unique way so that they
can get the huge profit margin by raising their sales.

Physical-The physical appearance of the company is the sports. The company majorly deals in
the sports apparel where they had gain a major customer attraction and had maintained the brand
loyalty among the customers globally and working as a huge brand (Liu and et.al., 2017).
Process- The company nowadays uses the online services for the company to deal with the
customers as it is more in trend and the customers are more attracted towards that. The 35% of
the sell of company is being done by the online services and it is mostly preferred by the
customers.
Value Chain Model
Value chain model is set of activities in which a company operating in the particular
industry performs in order to render the valuable product for marketplace.
Primary activities- The infrastructure of the company includes the talented top management, high
liquidity and cost advantages (Ben-Haim, 2015). The human resource management of the
company consists of training framework and performance culture. Technology development
which is being made by the company is higher sale with the help of e-commerce, and having
ongoing development in the products. Procurement of the company is flexible make-to-stock and
safety stock which is in hand
Inbound logistics- Under this company outsource the non core activities which can be using the
recyclable and sustainable material for making these shoes so that it couldn't harm the nature in
any way. After adopting the sustainable practice more and more consumers are attracted towards
the company's product.
Operations- the company uses the automate in their production process so that their work can be
completed quickly and quality product can be rendered by them. They also use the quality
control so that they can maintain the particular quality in their product so that they can satisfy
their customers easily.
Outbound logistics- Company has maintained the good supplier relationship which is helpful
for them in getting the appropriate costing for the product which is being manufactured by them
(DeJordy, Mitteness and Baucus, 2017). The company has fast and timely logistic system so that
there is no delay in the transportation of their products and it is available to their customers at
any time.
Marketing and sales- The major emphasis of company is on the sports events as the company's
major product is the sports shoes for athletics. The company has uniqueness in their product and

also had a huge consumer base. The quality of the product is also high which provides the
consumer the best product (David, 2016).
CONCLUSION
From the above study it is concluded that the strategic approach is very necessarily used
by the company for gaining the huge profit margin for the company and increasing the sale of the
company. The company is taking the major strategic decision which is helpful for them in
competing with the rivals in the market and obtains the high revenue in the market. For
application of this decision various strategic approach and models are helpful for getting done
with the decision which are being taken by the company for their growth. Wide range of
consumer can be attracted through this and company can expand more its business to the global
level and can gain huge brand loyalty among consumers.

REFERENCES
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